Francois Gouws on how PSG Konsult is responding to COVID-19

Wealth management group PSG Konsult has navigated through a challenging economic landscape in South Africa, marked by the impact of COVID-19 on the country's economy. Despite facing difficult times, PSG Konsult managed to increase full-year profits and dividends, showcasing resilience and adaptability in the face of adversity. The group's total assets under management did take a hit due to the COVID-19 market selloff, but CEO François Gouws remains optimistic about the future. In a recent interview with CNBC Africa, Gouws shed light on the company's strategic decisions in response to the ongoing crisis. As South Africa grapples with a potential 10% decline in GDP and escalating budget deficits, PSG Konsult has been focused on safeguarding its capital base and providing valuable advice to clients. Gouws emphasized the importance of maintaining a strong capital base and investing in low-risk assets to mitigate potential risks like the ones presented by COVID-19. The company's long-term approach to managing costs, leveraging technology, and enhancing service levels has positioned PSG Konsult for continued success. Additionally, Gouws highlighted the company's significant cash reserves of approximately 2.8 billion Rand, which will be utilized to seize opportunities for growth and acquisition in the market. While PSG Konsult remains committed to organic growth, Gouws acknowledged the potential for strategic acquisitions in the current environment. The company's investment in systems and technology has enabled seamless remote operations and enhanced client service during the challenging times. In terms of executive compensation, Gouws expressed a willingness to evaluate the situation and consider pay cuts if necessary. PSG Konsult has already contributed 10 million Rand to the Solidarity Fund and remains dedicated to supporting relief efforts amid the crisis. As the company continues to weather the storm and adapt to changing market conditions, Gouws emphasized the importance of responsible decision-making and a client-centric approach to navigating the uncertain economic landscape.